How the Wild Shale Race May Be Harming the U.S. Oil Trove
- Decline rates are rising for older wells in key shale plays
- Producers must add 350,000 barrels a day to compensate: EIA
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The frantic shale race may be causing some long-term damage to assets in the Permian and other major U.S. oil fields.
As production from wells rapidly declines, drillers are rushing to add new ones at a faster pace in order to keep increasing output. The problem is that drilling multiple wells closer together is contributing to the drop in established ones, and sometimes causing harm that can’t be fixed.